By Scott Murdoch and Yantoultra Ngui
SYDNEY (Reuters) – Singapore Airlines or SIA has launched a $500 million 10-year dollar bond at U.S Treasuries plus 110 basis points, according to a term sheet seen by Reuters on Thursday.
Initial price guidance for the deal has been set at the 10-year U.S. Treasury rate plus 150 basis points, a separate term sheet seen by Reuters earlier on Thursday showed.
“We think this new issue is fairly priced relative to other outstanding U.S. dollar bonds from SIA,” Cyrus Ng, a research analyst at Bondsupermart, wrote in a note on Thursday.
“Investors who are looking for a longer-dated bond (10-year) may find this bond interesting considering the general lack of longer-tenor bonds within the airline industry,” he added.
Orders reached over $4.5 billion, according to a book message sent by the deal’s bankers.
Proceeds will be used for aircraft purchases and aircraft related payments, general corporate or working…
